The Institute of Chartered Accountants of Nigeria (ICAN) has approached the National Assembly for the amendment of its enabling Act.
The institute was established by the Act of parliament No 15 of 1965 to regulate the practice of accountancy in Nigeria, to determine the skills to be attained by persons seeking to be members of the profession and to update the skills from time to time.
The dynamics in the operating environment have necessitated that the Act establishing the institute evolves with current realities. ICAN is, therefore, seeking an amendment of the Act establishing the institute to enable its members function more effectively as it continues to act in the public interest.
Since the curriculum of the institute, there have been developments over the years.
“We have done an extensive review of the current Act, against the backdrop of emerging issues, and identified key areas that have been amended which require the blessings and passage of the National Assembly as well as the assent of Mr President,” ICAN stated in a statement signed by Ahmed Kumshe, registrar/chief executive officer.
These amendments would further bring current practices to be in harmony with global standards and international best practices where tax practice as part of accounting practice does not require professional accountants to register with a separate body in order to practice taxation as is the case in the United Kingdom, United States, Australia and New Zealand, India, South Africa, Kenya, among others in international best practice.
Contrary to the report in some quarters that ICAN wants to regulate tax practice in Nigeria, the institute stated that it doesn’t want to regulate tax but only seeks its members to continue to practice tax as they have been doing since 1965.
The tax has been an integral part of Accounting right from inception in Nigeria and globally. Accountants, lawyers and other skilled professionals practice tax worldwide and in Nigeria. The calculation of tax starts from profit or loss which accountants determine through financial statements. Accountants all over the world practice tax without hindrance or being compelled to belong to another professional body to engage in this practice.
“For the avoidance of doubt, we wish to assure other allied professional bodies that ICAN is not planning to take over their responsibility, we are only interested in regulating our members practising the different arms of the accounting profession as it obtains in other climes,” the institute further stated.
Lawmakers are to decide whether tax regulation and practice in Nigeria should be left to the exclusivity of one professional body or subject this to more than one body as is the case with the accountancy profession where both Association of National Accountants of Nigeria (ANAN) and ICAN are two professional bodies recognised to regulate accountancy practice in Nigeria.
ICAN is only seeking to enhance the professional competence of its members in view of the dynamic nature of the profession, to keep them abreast of new developments, enable them to function better in the public interest and compete favourably with other professionals globally.
According to the institute, this will enhance the economic growth and outlook of the nation in attracting the best investors to the country, help provide employment for Nigerians, increase the country’s international rating on transparency and ease of doing business as well as curb corrupt practices in the country among others.
